How the accounting options influence the investment in international companies: a case study on large US companies

We examined the variation in accounting policies associated with institutional investment in international equity and used the US and non-US companies as samples. The results suggest that large US institutional holdings in non-US companies are associated with American Depositary Receipt listing and, incrementally, choice of accounting methods that conform to US Generally Accepted Accounting Principles. The examination of the accounting options suggests that the differences in informational content are relatively minor